Shares of Hersha Hospitality Trust (NYSE:HT) will begin trading ex-dividend in 3 days. To qualify for the dividend check of $0.28 per share, investors must have owned the shares prior to 28 March 2018, which is the last day the company’s management will finalize their list of shareholders to which they will send dividend payments. Should you diversify into Hersha Hospitality Trust and boost your portfolio income stream? Well, keep on reading because today, I’m going to look at the latest data and analyze the stock and its dividend property in further detail. Check out our latest analysis for Hersha Hospitality Trust
Here’s how I find good dividend stocks
Whenever I am looking at a potential dividend stock investment, I always check these five metrics:
- Is their annual yield among the top 25% of dividend payers?
- Does it consistently pay out dividends without missing a payment of significantly cutting payout?
- Has dividend per share risen in the past couple of years?
- Is its earnings sufficient to payout dividend at the current rate?
- Will it be able to continue to payout at the current rate in the future?
How well does Hersha Hospitality Trust fit our criteria?Hersha Hospitality Trust has a trailing twelve-month payout ratio of 61.57%, which is rather low compared to other REITs. Generally, REITs are expected to pay out the majority of its earnings to provide a regular income stream for their investors. Furthermore, analysts have not forecasted a dividends per share for the future, which makes it hard to determine the yield shareholders should expect, and whether the current payout is sustainable, moving forward. If there is one thing that you want to be reliable in your life, it’s dividend stocks and their constant income stream. HT investors will be well aware there has not been any increase in the dividend payments over the last 10 years, although the payments have at least been steady. However, income investors that value stability over growth may still find HT appealing. Compared to its peers, Hersha Hospitality Trust produces a yield of 6.38%, which is high for REITs stocks.
Keeping in mind the dividend characteristics above, Hersha Hospitality Trust is definitely worth considering for investors looking to build a dedicated income portfolio. Given that this is purely a dividend analysis, you should always research extensively before deciding whether or not a stock is an appropriate investment for you. I always recommend analysing the company’s fundamentals and underlying business before making an investment decision. There are three essential factors you should further research:
- Future Outlook: What are well-informed industry analysts predicting for HT’s future growth? Take a look at our free research report of analyst consensus for HT’s outlook.
- Valuation: What is HT worth today? Even if the stock is a cash cow, it’s not worth an infinite price. The intrinsic value infographic in our free research report helps visualize whether HT is currently mispriced by the market.
- Other Dividend Rockstars: Are there better dividend payers with stronger fundamentals out there? Check out our free list of these great stocks here.